My 8 years of experience in 5 min.
A thread on Gap trading.
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Gap creates emptiness on the price chart. Price gaps are simply areas on the chart where no trading has taken place.
The gap is the biggest imbalance between demand and supply. The gap widened due to the aggressiveness by the buyers, I mean there are more buy orders in open than the supply available at the closing price of the first day.
There is also a gap due to the overnight price of the participant or any big news.
The smart money is trying to skip important support and resistance levels, ie if they are bullish they gap-up the price above the supply zone
Types of gap trading strategy 👇
1⃣ Breakaway (or Breakout) gaps
2⃣ Runaway (or measuring) gaps
3⃣ Exhaustion gaps
4⃣ Professional gap
5⃣ Inner gap
1⃣ What is the breakaway gap :-
Breakaway gap means breaking of an important support or resistance or important trend line in the form of a gap.Most of the time this gap is not filled quickly or not on the same day.
2⃣ Runaway (or Measuring) Gap:
After the move has been underway for a while, somewhere around the middle of the move, prices will gap, this gap is called the runaway gap. In an uptrend, it’s a sign of continuation of a trend; in a downtrend, a sign of continuation of the trend.
3⃣ Exhaustion Gap:
Near the end of an uptrend, the exhaustion gap occurred.This price action is usually designed to trap you into a potentially weak market and into a poor trade, catching stop-losses on the short side, and generally panicking traders to do the wrong thing.
4⃣ Professional GAP :-
These gaps appear at the beginning of the moves. Generally occur at the supply or demand zone. (Gap up from demand zone and gap down from supply zone) when price approaches the quality supply and demand zone.
5⃣ Inside GAP :-
Inside gaps are gaps happening inside the prior day’s range.
- Week market gap up
- Strong market gap down
However, low volume warns you of a trap up-move (which is indicative of a lack of demand in the market) after a gap up resistance.
In next thread I will tell the strategy of how to trade these gaps .
I regular post such threads on Stock market learning.
Telling my 8 years of experience in 5 min. A thread on how to find out high and lows of stock market.
We have seen two types of solar dates; Static(Stable) and dynamic solar dates. As per gann, the year is supposed to begin with 21st March, not 1st January.
In the calculation of seasonal time periods, we do not start calculating time from Jan 1 but calculate the time periods from the date when the Spring season starts on March 21st.
My 8 years of experience in 5 min.
A thread on vwap trading strategy .
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VWAP stands for Volume Weighted Average Price. VWAP is used by institutional traders to identify good entry and exit points. Conversely, when a professional trader has to get rid of a large position, they try to sell at the VWAP or higher.
- If VWAP is rising then it shows buyers in control.
- If VWAP is falling it shows sellers in control.
- If VWAP is flat then it indicates no one is controlling the market, the price is in a trading range.
My 8 years of experience in 5 min.
A thread on how to trade the gap up or gap down opening .
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There are three factors to monitor to determine whether the gap is real or trapped. The three factors are volume, opening price, and pullback.
1⃣ Gap and Go Trading Strategy :-
- Price gap above the previous day's high.
- Wait for the completion of the first candle.
- Volume should be high and should be helpful in the direction of gap.
- Mark opening range.
- Entry on breakout of day's high
value must be above vwap.
Telling my 8 years of experience in 5 min. A thread on how Stock Market Manipulation is done.
What is Market Manipulation?
It refers to artificial inflation. Also known as price manipulation or stock manipulation, it involves the literal manipulation of the financial market for personal gain. It means influencing the behavior of securities with the intention of doing so.
Market manipulation techniques include spreading false information through online channels that are often visited by investors. The barrage of bad information, when combined with market signals that seem legitimate on the surface, can encourage traders to execute a given trade.